Diversified utility
PPL Corporation
(
PPL
) announced that it has commenced the process of an underwritten
public offering of 9.9 million of its common shares. The company
will allow the underwriters of the issue to purchase up to 1.485
million additional common shares to cover over-allotments, if
necessary.
The issue was made in accordance with the shelf prospectus filed
by the company with the Securities and Exchange Commission. PPL
Corporation intends to utilize the net proceeds of the issue,
including proceeds from sale to Forward Counterparties, to meet its
short-term liabilities, contribute capital to its subsidiaries and
for general company purposes.
The company from time to time issues shares and utilizes the
proceeds to meet its financial obligation. In April 2011, the
company issued 92 million shares at a price of $25.30 per share and
the net proceeds of $2.3 billion were used to repay a portion of
its Bridge term loan. The Bridge loan was utilized by the company
to fund an acquisition.
PPL Corporation ensures a steady growth in shareholder return
via regular and incremental dividend payments. The 2011 annual
dividend rate of $1.40 per share was hiked by another 4 cents to
come to the 2012 rate of $1.44 a share, a testament to the
financial well-being of the company.
The company looks for funds because of its active acquisition
policy and investment in infrastructure. We believe the cash
generated internally as well as the issue of shares helps PPL Corp.
to tide over its financial requirements.
Based in Allentown, Pennsylvania, PPL Corp. generates and
delivers electricity and natural gas to nearly 5.2 million
consumers in the United States and United Kingdom. The company
retains a Zacks #3 Rank, which translates into a short-term Hold
rating. The competitors of the company are
Exelon Corp.
(
EXC
) and
FirstEnergy Corp
. (
FE
)
EXELON CORP (
EXC
): Free Stock Analysis Report
FIRSTENERGY CP (
FE
): Free Stock Analysis Report
PPL CORP (
PPL
): Free Stock Analysis Report
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